We're trading inside a range right now. Here's how this trade should be done: 1) ABSOLUTELY NO POSITIONS SHOULD BE TAKEN ON THE GREY MIDDLE AREA. This area is way too far from both stop-losses, causing it to be non-profitable. 2) You should trade based on your "belief"/analysis: "is the market bearish"? If your answer is "yes", only short positions should be taken (or very low leverage long positions). 3) You should use an indicator to base your entry on. For example: RSI + MACD gives you a "bullish sign" around 5.55. Then, you should entry long if you so desire. If your indicators didn't give you any trading signs, DON'T OPEN A POSITION. 4) Take your profits based on your indicators as well. Don't wait for the market to hit the top of the trading range (it might as well never do it). The areas I've highlighted on the chart are based on fibonacci retracements and risk reward ratios. 5) Take full profits if the price hit the opposite side of the trading range. For example: if you get in at 5.45 and the price hits 6.23, close your position. Trading in a range is dangerous. 6) Take your stop-loss if you need it. My opinion: trade short mostly, and if you wanna trade long, take full profits on bearish signs from indicators. Don't follow my strategy blindly, I'm nothing but an amateur. Feel free to give me some critics.
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Example on how to trade this range.
Trade active
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Got in short at 6.038 at futures. Price is now ranging between a new resistance and support, so i adjusted the stop-loss and the target accordingly. Since this trade is very close to the grey non-profitable area, I've put very low leverage on this trade. Let's observe how it turns out.
Trade closed manually
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Price seems to be respecting the trendline highlighted in red. Too risky to stay on this trade.
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Trading inside the bigger range now. Might look to short soon, if indicators say so.
@pitchup, i'll do a proper post later today, but i think it will consolidate into a bull flag, going sideways a bit. very unexpected breakout yesterday, should retrace a bit as well.
pitchup
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well, that one didn't work out but did and I missed the rocket up (decided to take the only non sideways day off in a while) did how ever to short it back down a bit along with the the alts.
pitchup
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wow man, you have a new follower. Thanks for all the detailed information.